The composition of the U.S.’ housing market is changing radically, and nowhere is that change more apparent than among hispanic homeowners.
The data could not be more clear – in the next two years, the purchasing power for Hispanics will increase an incredible 50 percent, or, to $1.6 trillion, and given the growth of the demographic, they will account for 40 percent of new households over the next 10 years.
Here are some other details you should be aware of, as the market changes:
- Other minorities will comprise 70 percent of total new household growth the next 10 years.
- In 2011, 11 percent of Hispanic and Latino buyers made up 11 percent of all first-time homebuyers, a 38 percent increase from 2010.
- There is a considerable interest in the Hispanic community for homeownership; 56 percent consider owning a home a symbol of success; 68 percent are more likely to believe purchasing a home is a good financial opportunity; and 73 percent believe owning a home is a good way to accumulate inheritable wealth.
- The Hispanic population also continues to grow, and its prevalence in the housing market will grow with it; from 1980 to 2010, the Hispanic population increased by 3.5 times, or, two out of every five people added to the U.S. population were Hispanic.
Tom Krettler, the co-president of MORe and an agent with RE/MAX Unlimited Northwest, said that because the Hispanic population is growing, more are taking notice of their power as consumers, but for him, they’ve always been a great customer base.
“Hispanics have played a big role in real estate all along,” Krettler said. “The population is going to grow and expand, and I see them as being an integral part of real estate.”
Krettler also said that in his markets, which include scores of northern and western suburbs and neighborhoods, he does not find higher concentrations of Hispanic buyers in certain areas.
“People will look anywhere they can afford,” he said.